Texas 2019 - 86th Regular

Texas Senate Bill SJR21 Compare Versions

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1	1	By: Seliger S.J.R. No. 21
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4	4	SENATE JOINT RESOLUTION
5	5	proposing a constitutional amendment to provide for foregoing the
6	6	transfer of oil and gas production tax revenue to the economic
7	7	stabilization fund if the ending fund balance for the preceding
8	8	fiscal year is greater than 10 percent of the prior fiscal year's
9	9	total net general revenue related collections and for reducing the
10	10	rates of oil and gas production taxes by amounts sufficient to equal
11	11	the foregone transfer.
12	12	BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 49-g, Article III, Texas Constitution,
14	14	is amended by amending Subsections (c), (c-1), (c-2), (d), and (e)
15	15	and adding Subsections (c-3), (c-4), (c-5), and (c-6) to read as
16	16	follows:
17	17	(c) Not later than the 90th day of each fiscal year, the
18	18	comptroller of public accounts shall transfer from the general
19	19	revenue fund to the economic stabilization fund and the state
20	20	highway fund the sum of the amounts described by Subsections (d) and
21	21	(e) of this section, to be allocated as provided by Subsection
22	22	[Subsections] (c-1) [and (c-2)] of this section. However, if
23	23	necessary and notwithstanding the allocation [allocations]
24	24	prescribed by Subsection [Subsections] (c-1) [and (c-2)] of this
25	25	section, the comptroller shall reduce proportionately the amounts
26	26	described by Subsections (d) and (e) of this section to be
27	27	transferred and allocated to the economic stabilization fund to
28	28	prevent the amount in that fund from exceeding the limit in effect
29	29	for that biennium under Subsection (g) of this section. Revenue
30	30	transferred to the state highway fund under this subsection may be
31	31	used only for constructing, maintaining, and acquiring
32	32	rights-of-way for public roadways other than toll roads.
33	33	(c-1) Of the sum of the amounts described by Subsections (d)
34	34	and (e) of this section and required to be transferred from the
35	35	general revenue fund under Subsection (c) of this section, the
36	36	comptroller shall allocate one-half to the economic stabilization
37	37	fund and the remainder to the state highway fund[, except as
38	38	provided by Subsection (c-2) of this section].
39	39	(c-2) If the ending balance in the economic stabilization
40	40	fund for the preceding fiscal year was not greater than 10 percent
41	41	of the prior fiscal year's total net general revenue related
42	42	collections, the rate of tax imposed on oil production and the rate
43	43	of tax imposed on gas production in the current fiscal year shall be
44	44	as provided by the legislature under general law [The legislature
45	45	by general law shall provide for a procedure by which the allocation
46	46	of the sum of the amounts described by Subsections (d) and (e) of
47	47	this section may be adjusted to provide for a transfer to the
48	48	economic stabilization fund of an amount greater than the
49	49	allocation provided for under Subsection (c-1) of this section with
50	50	the remainder of that sum, if any, allocated for transfer to the
51	51	state highway fund. The allocation made as provided by that general
52	52	law is binding on the comptroller for the purposes of the transfers
53	53	required by Subsection (c) of this section].
54	54	(c-3) If the ending balance in the economic stabilization
55	55	fund for the preceding fiscal year was greater than 10 percent of
56	56	the prior fiscal year's total net general revenue related
57	57	collections, the comptroller shall not transfer any general revenue
58	58	to the economic stabilization fund during the current fiscal year
59	59	but shall transfer to the state highway fund under Subsection (c) of
60	60	this section and retain as general revenue under Subsections (d)
61	61	and (e) of this section the amounts that would have been transferred
62	62	or retained had the ending balance been less than 10 percent of the
63	63	prior fiscal year's total net general revenue related collections.
64	64	(c-4) In this section:
65	65	(1) "Tax relief set-aside" means the net amount of general
66	66	revenue, as appropriate, that would have been transferred to the
67	67	economic stabilization fund in the preceding fiscal year under
68	68	Subsection (c) of this section had the ending balance in the fund
69	69	for that fiscal year been not greater than 10 percent of the prior
70	70	fiscal year's total net general revenue related collections.
71	71	(2) "Tax-rate-cut factor" means the quotient of the tax
72	72	relief set-aside divided by the net amount of oil production tax or
73	73	gas production tax, as appropriate, that the comptroller estimates
74	74	under Article III, Section 49a(a), of this constitution will be
75	75	collected in the current fiscal year.
76	76	(c-5) If the ending balance in the economic stabilization
77	77	fund for the preceding fiscal year was greater than 10 percent of
78	78	the prior fiscal year's total net general revenue related
79	79	collections, the rate of tax imposed on oil production for the
80	80	current fiscal year shall be calculated by subtracting the
81	81	tax-rate-cut factor from one and multiplying the remainder by the
82	82	tax rate for oil production provided by the legislature under
83	83	general law. The comptroller shall establish the rate of oil
84	84	production tax not later than the 90th day of each fiscal year.
85	85	(c-6) If the ending balance in the economic stabilization
86	86	fund for the preceding fiscal year was greater than 10 percent of
87	87	the prior fiscal year's total net general revenue related
88	88	collections, the rate of tax imposed on gas production for the
89	89	current fiscal year shall be calculated by subtracting the
90	90	tax-rate-cut factor from one and multiplying the remainder by the
91	91	tax rate for gas production provide by the legislature under
92	92	general law. The comptroller shall establish the rate of gas
93	93	production tax not later than the 90th day of each fiscal year.
94	94	(d) If in the preceding fiscal year the state received from
95	95	oil production taxes a net amount greater than the net amount of oil
96	96	production taxes received by the state in the fiscal year ending
97	97	August 31, 1987, and the ending balance in the economic
98	98	stabilization fund for the preceding fiscal year was not greater
99	99	than 10 percent of the prior fiscal year's total net general revenue
100	100	related collections, the comptroller shall transfer under
101	101	Subsection (c) of this section and allocate in accordance with
102	102	Subsection [Subsections] (c-1) [and (c-2)] of this section an
103	103	amount equal to 75 percent of the difference between those amounts.
104	104	The comptroller shall retain the remaining 25 percent of the
105	105	difference as general revenue. In computing the net amount of oil
106	106	production taxes received, the comptroller may not consider refunds
107	107	paid as a result of oil overcharge litigation.
108	108	(e) If in the preceding fiscal year the state received from
109	109	gas production taxes a net amount greater than the net amount of gas
110	110	production taxes received by the state in the fiscal year ending
111	111	August 31, 1987, and the ending balance in the economic
112	112	stabilization fund for the preceding fiscal year was not greater
113	113	than 10 percent of the prior fiscal year's total net general revenue
114	114	related collections, the comptroller shall transfer under
115	115	Subsection (c) of this section and allocate in accordance with
116	116	Subsection [Subsections] (c-1) [and (c-2)] of this section an
117	117	amount equal to 75 percent of the difference between those amounts.
118	118	The comptroller shall retain the remaining 25 percent of the
119	119	difference as general revenue. For the purposes of this
120	120	subsection, the comptroller shall adjust the computation of
121	121	revenues to reflect only 12 months of collection.
122	122	SECTION 2. The following temporary provision is added to
123	123	the Texas Constitution:
124	124	TEMPORARY PROVISION. (a) This temporary provision applies
125	125	to the constitutional amendment proposed by the 86th Legislature,
126	126	Regular Session, 2019, providing for foregoing the transfer of oil
127	127	and gas production tax revenue to the economic stabilization fund
128	128	if the ending fund balance for the preceding fiscal year is greater
129	129	than 10 percent of the prior fiscal year's total net general revenue
130	130	related collections and for reducing the rates of oil and gas
131	131	production taxes by amounts sufficient to equal the foregone
132	132	transfer.
133	133	(b) The amendments to Section 49-g, Article III, of this
134	134	constitution take effect January 1, 2020, and apply only to oil
135	135	production taxes and gas production taxes imposed for a fiscal year
136	136	beginning after that date.
137	137	(c) This temporary provision expires January 1, 2020.
138	138	SECTION 3. This proposed constitutional amendment shall be
139	139	submitted to the voters at an election to be held November 5, 2019.
140	140	The ballot shall be printed to permit voting for or against the
141	141	proposition: "The constitutional amendment providing for
142	142	foregoing the transfer of oil and gas production tax revenue to the
143	143	economic stabilization fund if the ending fund balance for the
144	144	preceding fiscal year is greater than $5 billion and for reducing
145	145	the rates of oil and gas production taxes by amounts sufficient to
146	146	equal the foregone transfer."